Overview
- A partnership announced Thursday between Better Home & Finance and Coinbase will let qualified buyers pledge Bitcoin or USDC for a down payment on a Fannie Mae-backed mortgage.
- The setup pairs a standard conforming home loan with a second, privately financed loan secured by the pledged crypto, with Better originating and servicing the mortgage and Coinbase managing custody and the pledge process.
- Borrowers keep ownership of their tokens and can avoid selling them right away, which may defer taxable events, and pledged USDC can continue to earn rewards while held in custody.
- Rates on the crypto-backed mortgages will run about 0.5 to 1.5 percentage points higher than a typical 30-year loan, and there are no margin calls, with collateral only at risk after 60 days of missed payments.
- The launch builds on a 2025 FHFA directive to consider crypto in mortgage underwriting, and the companies say rules on eligibility, valuation of pledged assets, and national rollout timing will be detailed next.